ATVI Investment Analysis Report & Stock Research, Activision Blizzard, Inc.

Activision Blizzard, Incorporated (ATVI)

ATVI Stock Report

2-Year Price History

View Larger ATVI Chart
NASDAQ:ATVI
$11.82
(3/19 4:00PM)
-1.2%
Open$12 Mkt Cap$14.9 Billion
High$12.1 52Wk High$13.14
Low$11.6 52Wk Low$9.85
Volume15.8 Million Avg Vol 10D15.0 Million

Ockham's Rating/Recommendation Summary

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ATVI Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, ATVI the high and low end of the Price to Sales per share ratios are 3.69x and 1.99x respectively.

Notice that ATVI's current Price to Sales per share ratio is 1.03x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $11.47, ATVI is 64% below where we would expect to see it. This will beneficially factor into our final analysis of ATVI as it is not often that this stock sinks to these levels.

ATVI Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. ATVI is significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for ATVI to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 21.60 and a 11.74 low over the same period.

Just recall that when a stock's price, as in the cases of ATVI, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for ATVI's Price to Cash Earnings ratio is 16% below the current ratio of 19.44. That is not an insignificant amount, and diminishes our overall outlook on ATVI. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.

ATVI Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for ATVI to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.

Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from ATVI against the historic high and low levels over an available data range. Because ATVI has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In ATVI’s case, the estimated annual dividend is $0.15 producing a current dividend yield of 1.31%. The highest dividend yield from ATVI in recent history was 1.52% while the lowest dividend yield was 0.00%. ATVI’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 72.37% above the median which weighs very positively on our analysis of ATVI.

Peer Comparison

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Activision Blizzard, Inc. Industry Grouping

(3/18/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including ATVI) 17.96 8.47 » 50.66 3.91 1.89 » 9.89 19.34% 14.51%
*10 year range does not include current year values
Adobe Systems, Inc. ADBE $18.8 Billion $35.75 27.47 9.16 » 69.23 6.26 2.78 » 14.85 12.07% 17.08%
Cognizant Technology Solutions Corp. Class A CTSH $15.4 Billion $51.83 24.19 8.22 » 49.90 4.61 1.49 » 9.80 41.08% 22.18%
Activision Blizzard, Inc. ATVI $14.9 Billion $11.96 19.44 1.55 » 23.42 1.03 0.24 » 3.84 35.19% 8.18%
Symantec Corp. SYMC $14.1 Billion $17.46 12.57 9.52 » 36.21 2.57 1.67 » 9.35 26.88% 4.32%
CA, Inc. CA $12.2 Billion $23.51 11.11 6.42 » 48.82 2.76 1.45 » 7.54 5.45% 7.26%
Intuit Inc. INTU $10.9 Billion $34.65 14.48 9.04 » 49.13 3.35 2.05 » 7.90 11.25% 21.72%
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The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Power Lunch

Stocks in the News: Activision Blizzard, Incorporated Among the Twenty Most Discussed Stocks

We are observing a lot of attention being paid to ATVI in the news, so if you hold the stock you may want to take a look at what is going on.

The Motley Fool CAPS data suggests that investors believe Activision Blizzard, Incorporated will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ATVI has been less covered in the news compared to the rest of our universe of stocks. We considered ATVI as Undervalued as of our latest report at $10.21. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. That being said, the recent price appriciation does make it slightly less attractive to value investors as they may have missed the boat. Check the news on this stock because there is a catalyst that has allowed this stock to advance 8.81% today.

“… Number within video gamemaker, ACTIVISION BLIZZARD, top gainer on the nasdaq, reporting better than expected fourth quarter results. > > …”

Power Lunch

Power Lunch Has News on ATVI

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Activision Blizzard, Incorporated.

The Motley Fool CAPS data suggests that investors believe Activision Blizzard, Incorporated will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ATVI has been less covered in the news compared to the rest of our universe of stocks. We considered ATVI as Undervalued as of our latest report at $10.21. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. That being said, the recent price appriciation does make it slightly less attractive to value investors as they may have missed the boat. Check the news on this stock because there is a catalyst that has allowed this stock to advance 8.07% today.

“… ACTIVISION BLIZZARD's fourth-quarter loss widen, but the results still beat analyst expectations. Gamemaker behind "call of duty" is turning a profit of 49 cents a share, that ... …”

The Opening Bell on Fox Business

News on ATVI From the Pundits on The Opening Bell on Fox Business

Activision Blizzard, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Opening Bell on Fox Business.

Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Activision Blizzard, Incorporated has actually sunk a bit in comparison to the others. Take notice of the news on this stock because it is up $0.68 since the close of trading yesterday. At present, Ockham has a valuation stance of Undervalued on ATVI, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.

“… play and beat the street in september by 233%. They're starting to come on. ACTIVISION BLIZZARD, might thank chris cotter. …”

Closing Bell

Closing Bell: Discussion of ATVI's Earnings

In our methodology at Ockham we weight earnings performance heavily, so we always pay attention to earnings news coming from legitimate sources like Closing Bell.

The Motley Fool CAPS data suggests that investors believe Activision Blizzard, Incorporated will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ATVI has been less covered in the news compared to the rest of our universe of stocks. We consider ATVI as Undervalued at the current price of $10.51. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.

“… ACTIVISION BLIZZARD up 4. 5%. The company beat earnings and revenue estimates with its latest quarterly numbers. We're seeing some real money move into this stock into the ... …”

The Call

The Call Looked at Activision Blizzard, Incorporated in Extended Trading

Check out the news on ATVI because their stock is active in post market trading. This could be because of quarterly earnings or some other breaking news.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Activision Blizzard, Incorporated has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on ATVI, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.

“… I turn your attention to ACTIVISION BLIZZARD, ATVI, why might you ask? It's the strongest stock in the market right now that will be reporting earnings after the close. …”

Mad Money

Notice a Discussion Covering ATVI Appeared Recently in the Financial News

The latest news on Mad Money in regards to ATVI came through on RazorWire recently.

At present, Ockham has a valuation stance of Undervalued on ATVI, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Activision Blizzard, Incorporated has actually sunk a bit in comparison to the others.

“… my question is regarding ac ACTIVISION BLIZZARD. > > no, no. Sell, sell, sell activision. I'm jazzed here. Ways hungry for ideas. Trading is all. …”

Fox Business

See Why Activision Blizzard, Incorporated News Was Discussed on Fox Business

News has broken via the television and viral blogs regarding ATVI, so investors should take an interest in learning what was said.

At present, Ockham has a valuation stance of Undervalued on ATVI, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Activision Blizzard, Incorporated has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.

“… Titles like modern warfare too, made by ACTIVISION BLIZZARD electronic arts and competitors are getting very much the bulk of sales pushed through hurting electronic arts facing ... …”

Mad Money

News Developing on Mad Money for ATVI

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Activision Blizzard, Incorporated.

When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Activision Blizzard, Incorporated has been talked about more than normal recently. We consider ATVI as Undervalued at the current price of $11.25. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe Activision Blizzard, Incorporated will beat the market in the foreseeable future.

“… You come in to me with ACTIVISION BLIZZARD and I say I say herts because of social media gaming. I get this stuff because i'm a very cool 63-year-old. Andy in texas. > > …”

Fox Business

See Why Activision Blizzard, Incorporated News Was Discussed on Fox Business

News has broken via the television and viral blogs regarding ATVI, so investors should take an interest in learning what was said.

Based on our methodology, Activision Blizzard, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; ATVI has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… ACTIVISION BLIZZARD. > > it's "m" for mature. > > super mario for the the whole family can play. > > it's a throw back. You can see it's a 2d version. …”

Mad Money

Mad Money Has News on ATVI

Activision Blizzard, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Mad Money.

Based on our methodology, Activision Blizzard, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; ATVI has received less coverage from the financial media in business television and blogs.

“… caller: I wanted to know why ATVI is dipping even though they're having record sales on their video games? > > because whole industry is in the dole drums. …”

View All Activision Blizzard, Inc. Stock News

Key Fundamentals

ATVI - Activision Blizzard, Incorporated Fundamentals
Price (3/19 4:00PM) $11.82
Volume (3/19 4:00PM) 15.8 Million
Last Close Price $11.96
10 Day Average Volume 15.0 Million
13 Week Price Range $9.93 - $12.18
52 Week Price Range $9.85 - $13.14
LTM Revenue $4.3 Billion
 
Shares Outstanding (12/2009) 1.2 Billion
Market Capitalization $14.9 Billion
Shares Held By Institutions 515.6 Million
Institutional Holders 536
% Shares Held By Institutions 40.60%
Earnings Per Share (EPS) $0.09
P/E Ratio 132.90
Book Value Per Share $8.61
 
Gross Margin 60.80%
Annual Dividend 0.15
Dividend Yield 1.30%
Beta 0.64
Fiscal Year Ends December

About Activision Blizzard, Inc.

Activision Blizzard, Incorporated is considered to operate in the Technology sector. They specifically operate in the Multimedia/Graphics Software business segment contained within the Computer Software & Services industry.

The Company is a worldwide online, personal computer, console, and hand-held game publisher.